A stock certificate is used in corporate law. It is a legal document that will certify the ownership of a stock held by a corporation. This certificate can be paper or electronic. Not all shares are required to have a stock certificate; this will vary depending on the corporation size and amount of shares purchased.
The stock certificate will list the name of the investor, the name of the corporation, and the number of shares that have been purchase by this party. The certificate will also include a seal of authenticity and a specific CUSIP or CINS identification number, which will ensure that the document is legal.
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